Mortuary Science Practice Exam

Who is deemed the beneficiary on a guaranteed price contract?

1. Family member of the deceased

2. Provider of funeral services

3. Government agency

4. Insurance company

The correct answer is: Provider of funeral services

In a guaranteed price contract, the provider of funeral services is recognized as the beneficiary because this type of contract ensures that the funeral home will receive a predetermined amount of money for their services, regardless of the actual costs at the time of the service. When an individual or family prearranges their funeral and enters into a guaranteed price contract, they are essentially locking in the cost of services ahead of time. This protects both the consumer from future price increases and the funeral service provider by assuring them of compensation for their services. The other options, while they may play roles in different contexts, do not directly pertain to the beneficiary status within a guaranteed price contract. For instance, while a family member may be involved in discussing and deciding on funeral arrangements, they are not the beneficiary of the contract itself. Similarly, government agencies or insurance companies may be involved in aspects of funding or regulation, but they do not benefit in the same way that the provider does in the context of a guaranteed price contract. Thus, the provider of funeral services is the one who benefits directly from the agreement.